1.3. Linda is very risk averse. She therefore decided to insure his household content with two insurers. The value of her household content is R 450000 . She has insured the content for the full value with both insurers. Choose the incorrect statement below. A. Linda's action is known as double insurance. B. Linda will be allowed to choose from which insurer she will claim in case of a loss. C. The double insurance will enable Mario to claim in full from both insurers, since he has paid premiums to both on the full value of his assets.

Linda's strategy of insuring her household content with two insurers certainly showcases her desire for security, but it also leads her into the realm of double insurance, where the rules can get a tad tricky! While she may feel extra safe, should disaster strike, she can only receive compensation for the actual loss, not a full payout from both. Now, about those claims! When it comes to double insurance, Linda won't have the luxury of claiming the full insured amount from both insurers; instead, her payout will be proportioned according to the policies she holds. So, she's not doubling her benefits—only doubling her premiums! Time to navigate the fine print!